Steve Schnur
Executive Vice President & Chief Operating Officer at Duke Realty
Thanks, Jim. I'll first cover market fundamentals and then review our overall operational results. Industrial net absorption registered 121 million square feet, which is only one million square feet less than the all-time record. This was more than enough to offset the new supply as completions came in at about 79 million square feet. This positive net absorption over deliveries for the quarter reduced vacancy down to 3.6%, setting yet another record low. The strong fundamentals increased nationwide asking rents during the third quarter by 10% compared to the previous year.
CBRE now projects demand for the full year in the mid-300 million-square-foot range and likely to break the all-time 2016 record of 327 million square feet. Completions for the year are projected to be about 270 million square feet. National asking rents for the full year are expected to be in the mid-teens with some markets like Northern New Jersey and Southern California likely to see increases of 30% to 35%. The reaction to supply chain bottlenecks continues to be in the early stages of a long-term boom for our sector, with CBRE reaffirming roughly 1.2 billion square feet of projected aggregate demand over the next five years.
Increasing inventory levels, safety stock, consumer spending and online shopping trends are driving much of this demand. Demand by occupier type remains broad-based with e-commerce and logistics services companies continuing to make up roughly 60% of our activity, with the e-commerce contribution about 10% lower compared to 2020 and the 3PL contribution about 10% higher than this time last year. It is also noteworthy that Amazon's share of demand this year is about 10% of overall total demand compared to 18% of demand in 2020.
Turning to our own portfolio. We executed a very strong quarter by signing 9.5 million square feet of leases. The strong lease activity for the quarter resulted in continued growth in rents within our portfolio as we reported 35% on a GAAP basis and 22% cash, notably, with only 25% of our transactions occurring in coastal Tier one markets. We now project our mark-to-market on a GAAP basis within our portfolio to be 28%. We started $349 million of new development totaling two million square feet that consisted of six speculative projects and two build-to-suits in the quarter.
80% of this volume was in our coastal Tier one markets. Our team has continued to lease our speculative projects successfully as evidenced by stabilizing seven new developments during the quarter and increasing the development pipeline to 60% leased. To put our track record of leasing speculative projects in context, the $897 million of projects that we placed in service this year through September 30 increased from 39% leased when the construction started to 90% leased when they were placed in service.
For all of our speculative developments we've started since the beginning of 2019, our average lease-up time is less than two months from the dates the projects were placed in service. Our team's continued ability to quickly lease up speculative development projects will be a key contributor of our future growth. Sticking with the development pipeline. At quarter end, we totaled $1.1 billion with 86% of this allocated to Tier one markets and 60% preleased. We now expect value creation from this pipeline of over 60%, which is primarily due to rapid appreciation of rents and land.
We are also very proud to remind everyone that we target only developing the lead certified standards. We expect the lead percent of our total NOI to trend towards 25% by the end of 2022. On the construction cost side of things, our teams have taken steps to mitigate schedule risk related to materials such as contracting for steel nearly a year out, and we've only had minor delays in a few of our projects. The outlook for new starts is strong and is reflected in our revised guidance of our midpoint being up $175 million.
On a longer-term basis, we either own or control land, primarily in coastal infill markets that can support roughly $1 billion of annual starts over the next four years if the supply/demand picture remains robust, which we believe it will. It is also important to note the market value of the land we own is about 2 times our book basis, and on average, we've only owned this land for about two years. Land we control and will be closing over the next few quarters is also well below market.
The favorable land value, we will continue to support high development margins and very good IRRs long term. And overall, we believe we are very well positioned to continue to lead the sector and grow through new development. I'll now turn it over to Nick Anthony to cover the acquisition of disposition.